Published: 23/03/2022 By Tam van WykBetween the cost of living, interest rates and the war in Ukraine, it can all seem a bit gloomy at the moment, but for those in the property world, at least, there is still plenty of cause for optimism.
For starters, spring is now well and truly in the air - the days are getting lighter and brighter, and those daffs are popping up everywhere. It’s a busy time for the housing market, as people emerge from their winter hibernation and start looking for new homes. It’s especially true this year, as we are finally saying goodbye to some of the last of the Covid restrictions, including those tiresome passenger locator forms.
Even before spring arrived, the property market was already in rude health – Rightmove was reporting rocketing levels of demand in both the rental and sales market. Rents were up by 8.6% compared to last year. In sales, the average asking price jumped by as much as 2.3% in February, with annual growth hitting double-digits. And that’s despite the fact that most of us were aware the base rate was about to go up.
The fact is, the new rate (0.75%) is still incredibly low by historic standards. Mortgages have gone up a bit, but not by much - you can still get a 5-year fixed rate mortgage for as little as 2.2%, as long as you’ve got a reasonable deposit! Those rates, though, are likely to continue creeping up for a while. So, if you’re thinking about buying a new place, you might want to get your skates on, so you can lock in a good deal.
In the rental sector, landlords are more likely to be happier than their tenants. Statistics show rents tend to climb faster than interest rates, especially since any rise in mortgage costs tends to put tenants off buying, driving up demand (and prices) for rental property. The advice is therefore the same as it is for home buyers, if you are thinking about moving to a new rental property, you should get moving soon before prices go up.
If that’s what you are planning, you know what to do – just give us a call and we can get things moving.